2042

LAWS OF MARYLAND

[Ch. 311

1, 1961, the par value thereof and the proceeds thereof
as reflected in the financial records of the association
as of January 1, 1961. The proceeds from the sale of
[said] THE stock shall be set apart to the extent of the
par value and shall be maintained as a fixed and
permanent capital of the association. Any proceeds from
sale or issuance of [such] THE stock after January 1,
1961, shall become part of the fixed and permanent
capital of the association.

(2)   If it appears from the financial statement of
an association[ , ] or IF the Director has reason to
believe[,] that the capital of an association is
impaired, the Director may examine the association and
ascertain the facts, and if he finds that [such] THE
deficiency exists he shall require the association to
make good [such] THE deficiency within 60 days after the
date of request. The directors of every association
[upon] ON which a request to make good a deficiency is
made, shall levy an assessment [upon] ON the guaranty
stock to repair the deficiency. The directors shall
cause notice of [such] THE request to be given to each
stockholder of [such] THE association, showing the amount
of the assessment which the stockholder must pay for the
purpose of making good [such] THE deficiency.

(3)    If any stockholder refuses or neglects to pay
the assessment specified in the notice [aforesaid] within
90 days from the date of ITS mailing or service [of such
notice], the directors of the association may sell to the
highest bidder the shares of stock of [such] THE
stockholder. Before [such] THE sale, the directors
shall publish notice of the sale for 10 days in a
newspaper of general circulation published in the county
or city of this State where the principal office of the
association is located, and SHALL serve a copy of [such]
THE notice of sale on the stockholder personally or by
mailing it to his last known address 10 days before the
day fixed for [such] THE sale.

(4) For the purposes of this subsection: (1) If
the value of the assets of an association after deducting
the amount of its liabilities, including the value of its
outstanding free share accounts, is less than the
aggregate par value of the associations outstanding
guaranty stock, the capital of the association shall be
deemed to be impaired for the purposes of this section;
AND (2) all fees, charges, and commissions received by an
association shall be treated as earned income for the
year received.

(5) The provisions for assessment in this
subsection [shall] DO not apply to free share accounts of
members or borrowers.

161KK.